SAMG: A Steady Hand in Volatile Markets – Time to Buy?

The markets have been a rollercoaster lately, but some companies are proving they can navigate the chaos. Silvercrest Asset Management Group (SAMG) is one of them. Despite recent volatility, this firm is delivering on organic growth, dividends, and shareholder returns. Let's dig into why now could be the perfect time to add SAMG to your portfolio.

The Case for SAMG: Growth Amid the Storm

SAMG's Q1 2025 results are a beacon of stability. The firm reported $0.4 billion in new organic client flows, building on the $1.4 billion surge in Q4 2024. This brings total client inflows to $1.8 billion over just two quarters, a pace not seen in years. While total AUM dipped slightly to $35.3 billion due to market depreciation, the discretionary AUM remains steady at $22.7 billion, a sign that long-term investors are sticking with Silvercrest's strategies.

Dividends: The Secret Sauce to Long-Term Gains

SAMG isn't just about assets; it's about returning value to shareholders. The company recently declared a $0.20 per share dividend, up from $0.15 in 2023. When combined with its $12 million stock buyback program, this signals confidence in its financial health.

The magic here is the total shareholder return (TSR). Over five years, SAMG's TSR is 100%, driven by dividends. Compare that to its 22% pure share price growth—dividends alone added 78 percentage points of value. Even in a volatile quarter where the stock dipped 19%, the annual TSR including dividends hit 51%, proving that patience pays.

Why Now? Undervalued and Ready to Soar

SAMG's recent stock price slump has created a buying opportunity. While its 10-year average P/E ratio is 15x, it currently trades at 12x, below its historical norm. This discount ignores its robust fundamentals:
- Revenue grew 3.7% year-over-year to $31.4 million in Q1 2025.
- Adjusted EBITDA margins are 20.7%, a solid buffer against costs.
- Cash reserves hit $36.3 million, giving it flexibility to weather downturns.

Meanwhile, the company is doubling down on growth. Silvercrest is investing in talent and institutional markets, expanding its reach beyond traditional wealth management. Management calls this a “dislocation opportunity”—using market dips to attract new clients and outperform rivals.

The Bottom Line: A Buy for Patient Investors

SAMG isn't a get-rich-quick play. It's a defensive stock for long-term portfolios, offering stability in chaos. With dividends compounding at 33% over two years, and a TSR that outpaces the S&P 500, this is a stock to buy and hold.

Action to Take: Buy SAMG shares now while they're undervalued. Set a target of $10–$12 per share over the next 12–18 months, fueled by continued client inflows and dividend reinvestment.

The market may be shaky, but SAMG is proving it can turn volatility into value. Don't miss this chance to build resilience in your portfolio.

Note: Past performance doesn't guarantee future results. Always do your own research before investing.